The table below shows the formulae used for computing private lotteries duty:
|
Fruit Machines |
Tombola / Scheduled Lottery / Continuous Lucky Draw |
Formula for Non-GST registered clubs
|
9.5% x Turnover
|
30% x Sales
|
Formula for GST-registered clubs
|
9.5 % x (Turnover – GST chargeable)
Where GST chargeable @ 7% GST rate = 7/107 x (Turnover – Total Winnings)
|
30% x (Sales - GST chargeable)
Where GST chargeable @ 7% GST rate = 7/107 x (Sales – cash prizes)
|
Find out more on how private lotteries duty is computed from the examples below:
Example 1: Compute duty on fruit machines (non-GST registered clubs)
Club A (not GST registered) operates 3 fruit machines in August 2011.
Its private lotteries duty for August 2011 is calculated as follows:
Turnover* for Machine
|
31 Aug 2011
(A)
|
30 Jul 2011
(B)
|
Difference
(C = A-B)
|
1
|
$ 1,540,535.80
|
$ 1,523,932.40
|
$ 16,603.40
|
2
|
$ 4,521,545.90
|
$ 4,500,567.10
|
$ 20,978.80
|
3
|
$ 15,640,364.00
|
$ 15,531,974.00
|
$ 108,390.00
|
Turnover for all machines (C1)
|
$ 145,972.20
|
Duty (9.5% x C1)
|
$ 13,867.35
|
*Based on the machines’ soft meter readings
Example 2: Compute duty on fruit machines (GST registered clubs)
If Club A in example 1 was a GST registered club, its private lotteries duty for August 2011 would be calculated as follows:
Turnover* for Machine
|
31 Aug 2011
(A)
|
30 Jul 2011
(B)
|
Difference
(C = A-B)
|
1
|
$ 1,540,535.80
|
$ 1,523,932.40
|
$ 16,603.40
|
2
|
$ 4,521,545.90
|
$ 4,500,567.10
|
$ 20,978.80
|
3
|
$ 15,640,364.00
|
$ 15,531,974.00
|
$ 108,390.00
|
Turnover for all machines (C1)
|
$ 145,972.20
|
Total winnings paid
|
31 Aug 2011
(A)
|
30 Jul 2011
(B)
|
Difference
(C = A-B)
|
1
|
$ 1,268,552.40
|
$ 1,255,809.80
|
$ 12,742.60
|
2
|
$ 2,161,011.10
|
$ 2,151,854.50
|
$ 9,156.60
|
3
|
$ 10,721,234.00
|
$ 10,630,054.80
|
$ 91,179.20
|
Total winnings paid for all machines (C2)
|
$ 113,078.40
|
GST chargeable on gaming supplies [7/107 x (C1 - C2)] (D)
|
$ 2,151.93
|
Duty [9.5% x (C1 - D)]
|
$ 13,662.92
|
*Based on the machines’ soft meter readings
Example 3: Compute duty on other private lottery types (non-GST registered clubs)
Club B (not GST registered) has collected $3,000 from the sale of Tombola tickets in Oct 2011.
The private lotteries duty on Tombola for Oct 2011
= 30% x $3,000
= $900.00
Example 4: Compute duty on other private lottery types (GST registered clubs)
Club C (GST registered) has collected $3,000 from the sale of Tombola tickets in Oct 2011. $1,200 cash prizes and $350 prizes-in-kind have been paid out to the winners.
GST chargeable on gaming supplies
= 7/107 x ($3,000 - $1,200#)
= $117.76
The private lotteries duty on Tombola for Oct 2011
= 30% x ($3,000 – $117.76)
= $864.67
# Only cash prizes are deductible when computing the GST chargeable on gaming supplies.
FAQ
Q1. My club decides not to claim the cascade payouts when computing private lotteries duty, what should my club take note of when completing Form PL-R and the GST Return?
A1. If your club does not wish to claim cascade payouts as part of "Total winnings paid" to lower the amount of GST Chargeable on gaming supplies, your club should take note of the following:
(a) Form PL-R : Do not enter any amount under Line 1b(ii) '"Jackpot prizes awarded"
(b) GST Return : Do not reduce the standard-rated supplies by the cascade payouts.